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Higher Deductibles

When was the last time you reviewed your insurance deductible?

Affluent individuals insured by mass-market carriers are often over-insured because their deductible is too low. If you selected a low deductible on your home insurance policy and haven’t been increasing it to match your current financial standing, you are likely over-insuring against minor losses. Think of your insurance as a tool to financially mitigate a catastrophic or significant loss to your home.

If you answer yes to any of the following, then you may be paying too much for your insurance.

  • Have you had the same home and auto policy deductibles for years?
  • If you suffered a loss today, would you be able to pay your deductible without financial hardship?
  • If you had a minor loss, would you consider covering the cost without filing a claim?
  • Are you concerned about your premiums increasing due to claiming a minor loss?
  • If your deductible could be waived on home losses over $50,000, would you consider increasing it?

Experts suggest selecting the highest deductible that you are comfortable paying on a loss without significantly impacting your lifestyle. Increasing your deductible by one level can provide savings that will outweigh potential costs over time. According to the Insurance Information Institute, less than 7% of insured homes have a claim each year. By increasing your deductible on your homeowner’s insurance, it’s quite possible that, within a few years, the savings on the insurance policy would be greater than the difference in the deductibles. These savings will be even greater in future claim-free years.

Most financial advisors recommend your liability limits at least equal your net worth. The savings from raising your deductible can offset the additional premium from increasing your liability coverage.

How you may benefit from increasing your deductible

Imagine you and your spouse own a $2.5 million home and carry a $2,500 deductible. You also have three cars and your only child turns 16 this year. You’re concerned whether your $2 million umbrella limits will be sufficient with a youthful driver in your family. Moving up one deductible level could save approximately 15-21%, or several thousand dollars over a few years. That would cover the cost to increase your liability limits to $5 million to more adequately protect your net worth.

The following table highlights potential premium savings.

How Randall responds

With a Randall homeowners policy with protection endorsement, we will waive your deductible for a covered loss over $50,000. For example, if you have a covered loss totaling $100,000 with a $25,000 deductible, we will waive the whole deductible.

Why it's important to you

If you have been insured with a mass market/standard insurance company for several years, you may be carrying a deductible that is too low for your financial situation. Ask your independent agent to provide you with a Randall homeowners quote with several deductible options. Consider utilizing these savings from selecting a higher deductible and take the opportunity to increase your liability limits. The same logic holds true for your automobile policy. We recommend consulting your independent agent regularly, especially as your financial position evolves.

Our Locations

Main Office

4751 Wilshire Blvd.
Los Angeles, CA 90010
Main office: 323-936-1010
Toll free: 800-697-6122

Main Office - Bay Area

182 Howard Street, Ste 845
San Francisco, CA 94105
Main office: 323-936-1010
Toll free: 800-697-6122

Main Office - Desert

5 Trinity Court
Rancho Mirage, CA 92270
Main office: 310-993-3425
Toll free: 800-697-6122

Our Providers

If you are looking for a company that has only your best interests in mind, go with Randall. My family has had them as our agent for over 30 years with the best care and service anyone could ask for in an insurance representative. They believe in securing the best policies for the most reasonable price. In addition, I cannot say enough good things about the care our personal agent has put forth for us.
Caren F.
My wife and I have enjoyed a most satisfactory relationship with E. Broox Randall and Sons Inc. for over 10 years. The two major factors of why we have been, and we will continue to be their clients for all our insurance related needs are: their excellent customer service, no matter what issues have arisen related to insurance, they have always provided prompt, reliable, and friendly service. The second reason is for our own “peace of mind”, as we trust and rely upon their industry expertise and general counsel on all our insurance needs no different than the long-standing relationship we have with our financial advisor on our finances, and tax expert on tax-related matters.
John B.
I came to Randall after a miserable experience with an agent. Randall changed our insurance experience with candor prompt service, competitive rates and always available to help with a claim, new or changed coverage.
Mike L.
I just want to thank you, Nedi, for your high level of knowledge and professionalism over the years, representing E. Broox Randall & Sons as my account executive. You have continued to oversee all my insurance needs in a very detailed and explainable way.
A.D. Z.